Number
070285
Version
ORIGINAL
Reference
Sponsor
ALD. HAMILTON
Title
Resolution accepting an offer to purchase submitted by Housing Resources, Inc., for the improved, tax-deed property at 2500 West Capitol Drive, in the 1st Aldermanic District.
Analysis
Adoption of this resolution by at least two-thirds vote of the Common Council of the City of Milwaukee authorizes the sale of Development Property by acceptance of an unsolicited offer pursuant to Section 304-49-7, Milwaukee Code of Ordinances, and allows a Payment in Lieu of Taxes Agreement rather than a deed restriction prohibiting application for exemption from real estate taxation pursuant to Section 304-49-12, Milwaukee Code of Ordinances.
Body
Whereas, Section 304-49-7, Milwaukee Code of Ordinances, allows the City of Milwaukee (“City”) to accept unsolicited offers and convey property to a designated entity for adequate fair market consideration, which may be monetary or non-monetary; and
Whereas, Housing Resources, Inc., a non-profit corporation, has offered to purchase the improved property at 2500 West Capitol Drive for $5,000 to rehabilitate the building for use as the Tool Loan Program and homebuyer counseling services, as summarized in a Land Disposition Report, a copy of which is attached to this Common Council File; and
Whereas, The Department of City Development (“DCD”) has reviewed the offering price and proposed use and believes the City will receive fair market compensation from the purchase price and from operation of the Tool Loan Program and homebuyer counseling services and recommends acceptance of the offer; and
Whereas, Closing shall be contingent on DCD review and approval of firm financing and rehabilitation plans submitted by Housing Resources, Inc.; and
Whereas, Housing Resources, Inc., has offered to enter into a Payment in Lieu of Taxes (“PILOT”) Agreement with the City rather than acquire the property with a deed restriction that prohibits application to the City for an exemption from real estate taxation; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Commissioner of DCD, or designee, is authorized to accept the offer to purchase the property at 2500 West Capitol Drive and to execute all necessary documents and close the transaction according to the terms in the Land Disposition Report; and, be it
Further Resolved, That as a condition of the sale, the buyer must bring property into compliance with applicable building codes within the time specified by the Department of Neighborhood Services or said property may be subject to reversion of title to the City upon action by the Common Council; and, be it
Further Resolved, That the proper City officials are authorized to execute a PILOT Agreement with Housing Resources, Inc., rather than convey the property with a deed restriction prohibiting application to the City for exemption from real estate taxation; and, be it
Further Resolved, That the sale proceeds, less closing expenses, broker commission and a 25 percent disposition cost reimbursement to the Redevelopment Authority of the City of Milwaukee, be deposited in the Reserve For Tax Deficit Fund Account No. 0001-334106.
Drafter
DCD:KT:kt
05/30/07/A